Some Barriers to Organic Produce at the Wholesale Level

Why is only a small proportion of all produce organically grown? One important factor may be that farmers would grow it only if enough consumers are willing to pay a higher price to compensate for the higher production costs. However, as organic farming methods become more advanced and experienced organic farmers become more adept at increasing yields, the additional costs would likely come down. But since surveys show that consumers state they are willing to pay significantly more for organic produce when it has the same cosmetic quality as conventionally grown produce, there could be other explanations for the small showing of organics in the food market. (See "Consumers Want Reduced Exposure to Pesticides on Food," in this issue for more on consumers' willingness to pay to reduce risks from pesticide residues.) Some suspect that an important constraint on the growth of or-ganics is a reluctance on the part of food companies to carry it. A recent survey of tomato handlers in the Mid-Atlantic region supports this belief.